1-Introduction

Effective people management is very critical in any organization's success as the humans are the very important recourses of the organizations because these are the peoples who are the reason in the organization to make things happened in the organizations. First of all we have to differentiate in the human resource and human capital of an organization for the purpose of gaining deep insight in Human Capital management. We can say that human resource of the organization are the peoples who are involved in day to day consistent and standardized processes of an organization like the management of First line managers. Human recourse Management process consists of following factors. Recruitment and selection process. Compensation management. performance management. Labor relations. Training and development process. Effectively follow the above mentioned processes the organization manage their human resource to get success. However, Human capital management is the broader term in which organizations transforms their human resource into human capital for the purpose of making and implementation of strategies that are helping organization to get success. Human capital management can be defined as the assets of an organization in the shape of knowledge, organizational learning, talent, organizational development, skills, abilities and capabilities possessed by the peoples and the process of managing these things is called human capital management. Stiglitz and Boadway (1994) define human capital as the stock of accumulated skills and experiences that make workers more productive. Human capital is generally understood to consist of the individuals capabilities, knowledge, skills and experience of the companys employees and managers, as they are relevant to the task at hand, as well as the capacity to add to this reservoir of knowledge, skills, and experience through individual learning (Dess & Picken 2000:8).
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It is clear from the above mentioned definition of human capital it is widely clear that the concept of human capital is broader in scope than human resource. The importance of knowledge is very widely acceptable in an organization but human resource only concerning about the job related knowledge, whereas the human capital go beyond the individual knowledge to the collective organizational knowledge by the sharing of innovative ideas in the group which stores as an asset of the organization to get success. The concept and perspective of human capital stem from the fact that there is no substitute for knowledge and learning, creativity and innovation, competencies and capabilities; and that they need to be relentlessly pursued and focused on the firms environmental context and competitive logic (Rastogi, 2000:196). This definition leads to the concept that there is not only the need of accumulation process of extraordinary talented individuals, there must be some contribution from these individuals in the shape of showing desirability to invest their talent, skills and expertise in the organization. In other words individuals should show commitment with the organization in order to effectively utilize the human capital. In addition social capital and organizational capital are also attached with the human capital. These three forms of capital contributing in emerging the overall concept of intellectual capital. To maximize return on investment in employee selection and development, smart companies are integrating what have traditionally been separate HR initiatives into a cohesive "hire to retire" Human Capital Management strategy. This approach enables HR executives to earn their place at the table with the rest of the executive management team by delivering strategically relevant services that produce quantifiable results. Developed to integrate all the tools and processes associated with people and performance, the Human Capital Management approach aligns the goals of employees and the goals of the company to meet specific, measurable, and realistic business objectives. While the promises of Human Capital Management are great-increased adaptability, enhanced workforce performance, and the ability to do more with existing resources-the challenges are significant. To deliver results, strategic decision-makers in the Human Capital Management initiative must integrate actionable, objective, and relevant information about employee skills
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and capabilities. They must put that information to work on multiple fronts, from organizational design and workforce planning to recruitment, employee development and performance management. For managers and other strategic decision-makers faced with the task of keeping their initiatives moving forward, there's good news. While the processes associated with Human Capital Management are diverse, the skills component that drives many of those processes can be managed effectively through online skills measurement systems. A growing number of studies have attempted to show the link between human resources and performance. We believe that though the case is not watertight, due to a number of methodological reasons, the weight of evidence is beginning to look compelling. An important finding of this research is that both contingency and best practice models can complement each other to create the conditions for effective human capital management. That is, the adoption of such high performance practices as incentive-based pay or selective staffing is part of building an HR architecture. The details of how these practices become effective within the organisation then becomes a matter of aligning these broad principles to the strategy and the context of the company. There is a now a growing body of work (e.g. Becker & Gerhart 1996, Youndt et al 1996, Guest et al 2000) that argues for a convergence between the two views. We believe that greater understanding as to how these two approaches come together will enhance our knowledge of how human capital management can lead to improved competitiveness. There are several lists for high performance work practices, or best practice HR, each with varying content and with different ways of operationalising the individual HR activities. But at their heart, most studies emphasise enhancing the skill base of employees through selective staffing, comprehensive training and broad developmental activity, as well as encouraging employees through empowerment, participative problem solving and teamwork and group based incentives. The measurement of human capital remains an area where little commonality can be found. Perhaps this reflects the sheer number of contingencies facing organisations and the idiosyncrasies inherent in specific firm contexts. There is agreement, however, on the point that just relying on financial measures of performance is likely to result in a highly partial evaluation.

A stakeholder view or balanced scorecard approach is seen as most appropriate to capture the complexity of human capital activity. Ulrich (1998) argues that human resources, both as labour and as a business function, have traditionally been viewed as a cost to be minimised. At best, human resources are viewed as contributing to the efficiency of the organisation, but not explicitly as a source of value creation.

Intellectual Capital: The OECD (1999), defines intellectual capital as the economic value of two categories of intangible assets of a company organizational and human capital. Wright et al (2001), argue that intellectual capital is a factor that includes human capital, social capital and organizational capital. For Nahapiet & Ghoshal (1998), intellectual capital refers to the knowledge and knowing capability of a social collectivity, such as an organization, intellectual community, or professional practice. (1998:245). Intellectual capital is the combination of human capital, social capital and organizational capital which stresses on the need of giving attention to these other capital for the effective development of human capital. There is a lack of clarity surrounding these and related terms, with numerous definitions abounding. In one study, Gratton & Ghoshal (2003) argue that intellectual capital is part of human capital, that is, human capital subsumes intellectual capital, and also includes within it social capital and emotional capital. For most commentators, however (e.g. Kaplan & Norton 1993, Harvey & Lusch 1999, Stewart, 1997, Sveiby 1997) intellectual capital has a broad sweep and includes human capital as one of its key dimensions. Central to these ideas is that intellectual capital is embedded in both people and systems. The stock of human capital consists of human (the knowledge skills and abilities of people) social (the valuable relationships among people) and organisational (the processes and routines within the firm) (Wright et al 2001:716). Developing human capital therefore requires attention to these other complementarities. If competitive advantage is to be achieved, integration between human, social and organisational capital is required.
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Social Capital: According to Nahapiet & Ghoshal (1998) the central proposition of social capital theory is that networks of relationships constitute a valuable resource for the conduct of social affairsmuch of this capital is embedded within networks of mutual acquaintance (1998:243). Social capital, it is argued, increases the efficiency of action, and aids co-operative behaviour (Nahapiet & Ghoshal 1998). Social capital and social relationship have the greater influence on the development of both human capital and intellectual capital. Individuals having the social relationship impacts the effective use of their human capital in the organization as they are related to the society in which the particular organization is operated. Social capital is highly important at the organizational level. As Nahapiet and Ghoshal argue: social capital facilitates the development of intellectual capital by affecting the conditions necessary for exchange and combination to occur (1998:250). In social capital, the author argues the three major elements which are the followings. A structural dimension (network ties, network configuration and appropriable organization). A cognitive dimension (shared codes and languages, shared narratives). A relational dimension (trust, norms, obligations and narratives). All these above mentioned elements influence the development of intellectual capital. Gratton & Ghoshal (2003), argue that social capital is based on the twin concepts of sociability and trustworthiness: the depth and richness of these connections and potential points of leverage build substantial pools of knowledge and opportunities for value creation and arbitrage (2003:3). Social capital is defined by its function. It is not the single entity but a variety of a different entities, with two element in common: they all consists of some aspects of social structures, and they facilitate the certain actions of individual persons or corporate actors present within the structure. Like other form of capital, Social capital is productive, making possible the achievements of certain ends that in its absence would not be possible. Like physical capital and human capital, social capital is not completely fungible but may be specific to certain activities.
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A given form of social capital that is valuable in facilitating certain actions may be useless or even harmful for others. The concept of social capital is generally associated with social and civic participation and with networks of co-operation and solidarity. But other, more abstract, concepts are also associated with social capital, such as social cohesion, trust, reciprocity, and institutional effectiveness. Regardless of the context, this concept has been used productively in many areas of research. While the literature on this topic is abundant, the public policy community has had some difficulty embracing it. The concept continues to evolve both theoretically and in terms of how it empirically informs our understanding of this resource. Beyond conceptual concerns, however, the social capital concept has had the merit, over the last decade, attracting considerable attention to the importance of social ties. The following section presents the major social capital approaches that have dominated the literature over the last decade and sheds light on the implications of these approaches for measuring social capital. To understand the methodological choices governments make to examine social capital, it is important to situate them in relation to the different approaches to this concept. Put simply, one can distinguish three major approaches to social capital. The micro-approach emphasizes the nature and forms of co-operative behaviour; the macro-approach focuses on the conditions (favourable or unfavourable) for co-operation; and the meso-approach highlights structures that enable co-operation to take place. Let us look at these approaches in greater detail. The micro-approach to social capital focuses on the value of collective action. In this respect, it is similar to a game theory approach, since it deals with the propensity of actors to co-operate by way of association or by joining forces to attain certain objectives. This approach defines social capital as the potential of these co-operative strategies (groups, associations, etc.) to strengthen collective capacities. The macro-approach to social capital focuses on the value of integration and social unity. Like the theories of institutionalism, it emphasizes a communitys environmental, social, and political structures that convey values and norms (primarily trust and reciprocity), which in turn create certain conditions for social engagement and civic and political participation. According to this conception, social capital is analyzed as a product of these structures. As a result, the more these

structures instil trust and reciprocity, the more individuals will want to get involved in civic life and the more social capital will grow. The meso-approach is geared toward the more instrumental value of social capital. As such, it is akin to the resource mobilization theory, in that it links the concept to the potential of social networks to produce resources such as information and support. This analytical approach is referred to as meso because it looks at the structures that may enable co-operation. Organizational Capital: The principal role of organizational capital is to link the resources of the organization together into process that create value for customers and sustainable competitive advantage for the firm (Dess & Picken 1999:11). This will include: Organizational and reporting structures Operating systems, processes, procedures and task designs. Information and communication infrastructures. Resource acquisition, development and allocation systems. Decision processes and information flows. Incentives, controls and performance measurement systems. Organizational culture, values and leadership. If you have to motivate your employees to develop and effectively use their skills and knowledge the interaction between above mention points is very important. Effective organizational culture is very important in widely influence the recruitment and retention of employees as well as in developing the higher level of commitment of the employees to adds value in the human capital management process. In McKinseys War for Talent survey (1999), 58% of employees, by far the highest response, said that what they valued the most in organizations was strong values and culture. A supportive culture with strong corporate purpose and compelling values has been seen as the underlining reason for major corporate success (Peters & Waterman 1982, Collins & Porras 1994). A second major influence on human capital is the distribution of incentives among the employees and the performance measurement systems that are used by the specific organization.

The connection between social, organizational and human capital results in having the intellectual capital. According to Rumelt (1984), the routines and processes that act as the glue for organisations can either enhance or disable co-operative working and the development of knowledge. This is ultimately the simple point that organisational structures and processes must support the purpose of the organisation and so have requisite variety (Jacques 1981) without creating boundaries between individuals and groups.

Knowledge: As Knowledge is the crucial part in the human capital there is a need of effectively manage the employees which are the basic source of knowledge in the organization. This requires that firms define knowledge, identify existing knowledge bases, and provide mechanisms to promote the creation, protection and transfer of knowledge (Wright et al 2001: 713). Pfeffer & Sutton (1999),argue that the knowledge-doing gap (translating knowledge into action) is at least as important as accumulating knowledge in the first place. We can say that it is very major component in human capital management to provide a suitable conditions to the employees, where they feel comfortable to share and implement their knowledge. As Wright et al (2001), point out, in the HR literature there has been a focus on developing individual knowledge through training and providing incentives to apply knowledge. But the human capital literature is as much concerned with the organizational sharing of knowledge, making it accessible and transferable. Leonard-Barton (1992), has identified four processes for supporting organizational learning and innovation. 1. owning/solving problems (egalitarianism) 2. integrating internal knowledge (shared knowledge) 3. continuous experimentation 4. integrating external knowledge (openness to outside) The greater the sense of social community within the firm (social capital), the more likely it is that knowledge will be created and transferred (Coleman 1988).

2-Guideposts for effective Human Capital Management

Recognize and manage employees as critical assets: In order to promote the importance of human capital in the organization and effectively doing the process of Human capital management an organization consider their employees as their assets which are very crucial in the success of any organization by promoting the culture where individuals share their knowledge with others which includes in overall organizational knowledge assets and effective management of these knowledge is done in the organization. Moreover motivate individuals to share their leanings in teams to transforms individual learning to the organizational learning. Human resource development process should be incorporated in the organization for the purpose of development of these individuals and also providing mentoring to these individuals. Strategically plan and manage staffing: It is very important that the management should strategically plan and manage staffing process of their employees after carefully analyzing the skills, knowledge, competencies and the capabilities of the employees that results in the effectively manage the human capital of the organization.

Plan human capital costs for sustained investment: In particular aspect organizations should carefully examined the fact that the costs of human capital is very crucial for long-term sustainability of the organizations investment which strategically benefits the organizations in coming future. Openly engage employees via communication: As, employee engagement related to their organization is very critical component of human capital. Communication among the employees plays an important role in sharing their knowledge and ideas to each other which contribute in the organizational learning results in effectively manage the human capital of the organization.
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3-Strategies of building human capital

According to Ulrich and Co (1999), there are 6 Bs which can explain in detail that which strategies are helpful in building human capital. Buy strategy: The manager or a person responsible for searching new and skilled talent go outside the organization and search for the required skilled talent.

Build strategy: The manager struggle to develop the current workforce through proper training and by the skill developmental programs. But the first priority is that the training has to b individual need and business result oriented.

Benchmark strategy: First of all, the manager has to choose organizations which can b set as a target to achieve. Then try to set a visiting trip for the employees at those particular organizations to show them the excellent work. And then make expectations from the employees that they try to match up those excellent organizations.

Borrow strategy: Manager can be use new ideas of his own or can be generated from different consulting groups, suppliers or vendors or can also appreciate the ideas of firms own employees through motivating them.

Bounce strategy: By using this strategy manager can analyze his employees and redesigned the firms employee structure by removing less performing employees. And this can be done through reduction of expenditure and by down-sizing.

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Build strategy: The manager want to preserve those employees who are critical to the firm success or the firms most talented employees by providing career development opportunities, through appreciation and reward for their efforts.

4-Imperatives of effective management of human capital for optimum performance

To describe the human resource management as an answer of effective management, then these key factors must be addressed in an organization. These key factors are described here in detail. Organizational objectives: The objectives of an organization are highly affected by its culture and environmental influences. A manager should have a strict check on the internal and external factors and also their affect on the organizational objectives.

Organizational structure: The structure of an organization must be very flat and there should be a very less line of command and in other words that organizational structure should be decentralized which motivate employees for better communication.

Manpower planning: Manager should plan very carefully about the manpower. He should position right person at right place and at a right time. He has to take a helicopters view of his current workforce and then make decisions about over-staffing and under-staffing.

Job analysis/job description: A job analysis is a analytical study of the task to be performed to determine their essential factors. And these all task are written in the job description so that the new selected employees already know about their mental and physical capabilities which are required for a specific job.

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Recruitment and selection of employees: The recruitment and selection process of employees must be carefully designed. Because the performance of organizations depends on these processes. If these are carefully designed then we can hire those employees which can be later turned into capital for organizations.

Employee training and development: As Omolayole (1996) learning should be co-terminus with life is a constant reminder of the importance of training and learning on the job. It is the most important imperative of HRM. The organizations give much importance to the training and development of the employees because it plays an important role in the management of the human capital

Employee motivation: If an organization wants to retain its staff and human capital then it should use both intrinsic and extrinsic motivators such as bounces, appreciation to motivate the employees.

Succession planning: Succession planning is important for the employees who want to achieve a higher position in organization and there should be a proper career planning for individual employee. Performance management: As Noe & Walker (2002) asserts that Performance management should incorporate strategies to reward professional ethics, integrity, commitment and loyalty of employees. It should also promote teamwork, empower and foster customerfocus performance (360 degree feedback). Organizations used different kinds of methods to evaluate and enhance the performance of employees. Sometimes it used different motivator to enhance the performance of employees and quality of work.

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Industrial relations: Another factor which contributes in human capital management is the industrial relations. Organizations which are in full of dissonance represent very unproductive management of human capital. As Asemota (2004) says that: hence, a good industrial relations system should be based on tripartism: the government, the employers and the employees.

Good leadership: To implement all above mentioned discussion, organizations need good leaders which leads the organization and employees towards the success. Being a good manager in todays innovative, competitive and continuously changing environment is not enough. A manager should play a role of a good leader to lead the organization and to develop efficient human capital.

5-The relationship between "Human Capital Management" and performance

As Delery & Doty (1996), Huselid (1995) asserts that Considerable evidence suggests that human resource management (HRM) practices and systems make an important contribution to organizational performance. If human resources are managed in organizations effectively, then it can enhance the performance of the overall organizations. As Delery (1998), Way (2002), says that within this area of research, empirical studies have reported a positive effectiveness of high-involvement HR systems, generally conceptualized as a set of distinct but interrelated HRM practices that together select, develop, retain, and motivate a workforce. As in traditional concepts the purpose of HRM is just to select, develop, retain and motivate employees, having no concerns to convert them into critical capital of organizations. Lepak and Snell (1999) proposed the HR architecture model, arguing that, as different kinds of human capital that vary in importance to a firms competitiveness, the HR practices used to manage them are likely to vary. However, empirical examination of HR systems regarding human capital remains limited. Most research supports the moderating effect of business strategy, but neglects somewhat the impact of leaders social capital. Every human capital has a different importance for the organization, so HR managers cannot evaluate their importance and

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performance on same basis. Organizations giver more importance to the business strategy and totally forget the social capital which are the leaders and very critical to the organization. As Florin, Lubatkin, & Schulze, (2003) propose that Social capital might provide the ability to leverage the productivity of the teams internal resource base. Leaders provide power to the organizations to enhance the productivity of their human capital resources and gives control to retain them.

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References:
Coleman, J.S. 1988. Social capital in the creation of human capital. American Journal of Sociology, 94: s95-s120.

Dess, G.D. & Picken, J.C. 1999. Beyond productivity: How leading companies achieve superior performance by leveraging their human capital. New York: American Management Association.

Gratton. L. & Ghoshal, S. 2003. Managing personal human capital: New ethos for the volunteer employee. European Management Journal, 21:1-10.

Leonard-Barton, D. 1995. Wellsprings of knowledge. Boston: HBS Press.

Nahapiet, J. & Ghoshal, S. 1998. Social capital, intellectual capital and the organisational advantage. Academy of Management Review, 23:242-266.

Organisation for Economic Co-operation and Development (OECD) (1999). Measuring and reporting intellectual capital: Experience, issues, and prospects an International symposium.

Peters, T. & Waterman, R. 1982. In search of excellence. New York: Harper & Row.

Pfeffer, J & Sutton, R.I.1999. The knowing-doing gap: How smart companies turn knowledge into action. Boston: Harvard Business School Press. Rastogi, P.N. 2000. Sustaining enterprise competitiveness is human capital the answer? Human Systems Management, 19: 193-203.

Wright, P.M., Dunford, B.B., & Snell, S.A. 2001. Human resources and the resourcebased view of the firm. Journal of Management, 27: 701-721.

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Asemota, O. O. (2004). Managing Human Capital for Optimum Performance.

OMOLAYOLE, M. O. (1996) Effective Human Resources Management: Pivot to Real National Development. Institute of Personnel Management of Nigeria Annual Public Lecture.

NOE, R. A. (2002) Employee Training and Development, second edition McGraw-Hill Irwin, New York.

Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39: 802-835.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38: 635-672.

Lepak, D. P., & Snell, S. A. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24: 31-48.

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